Suppose a consumer with an income of $100 is faced with Px = 1 and Py = 1/2. What is the market rate of substitution between good X (horizontal axis) and good Y (vertical axis)?
A. -1.0
B. -2.0
C. -4.0
D. 0.50
Answer: B
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According to your authors, the prohibition on alcohol in the U.S. primarily shifted the ________ curve to the ________
A) supply; right B) supply; left C) demand; left D) demand; right
The idea of convergence is that
a. Poor and rich economies will converge on middle-income status. b. Capitalist and Socialist systems will become more alike. c. Poor countries will grow faster than rich ones, but may level off before becoming rich. d. Agricultural technologies will come to resemble industrial technologies. e. None of the above.
Investment in safety at the firm level poses a prisoners' dilemma because
A) if each firm plays its dominant strategy, joint profits are maximized. B) if each firm plays its dominant strategy, joint profits are not maximized. C) neither firm has a dominant strategy. D) the Nash equilibrium is not achieved.
_________ is the investment that individuals make in education, training, and health care that raise their productive capacity.
A. Capital market B. Human capital C. Human engineering D. Private good production